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8 , Evaluating free cash flows and return on invested capital You are an industry analyst for the telecom sector, You are anslyzing financial reports

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8 , Evaluating free cash flows and return on invested capital You are an industry analyst for the telecom sector, You are anslyzing financial reports from two companies; TrsT Ine. and Phonez Corp. Corporate tax for both firms is 3596 , Your associate analyst has calculated and compiled, in the following table, a list of important figures you need for the analysis: In your analysis; you want to look for several characteristics-one of them being the retum on invested capital (ROIC). Using the information avalable, complete the following statements: - TTST Ine, has a free cash flow than thonez Corp. does. - The net operating proht after tax (NOPAT) for TTST Inc. is , whereas the NOPAT for PhoneZ, Corp. is - TTBT inc, has a return on inveuted capital of , whereas, Phonez Corp, has a return on invested capital of Your inference from the analysis is that both firms are in a high-growth phase, and their growth will be profitable. Considering your analysis, which of the following statements is true? If RoIC is less than the rate of return that investors require, which is the weighted average cost of capital (WACC). then the firm is adding value. 8 , Evaluating free cash flows and return on invested capital You are an industry analyst for the telecom sector, You are anslyzing financial reports from two companies; TrsT Ine. and Phonez Corp. Corporate tax for both firms is 3596 , Your associate analyst has calculated and compiled, in the following table, a list of important figures you need for the analysis: In your analysis; you want to look for several characteristics-one of them being the retum on invested capital (ROIC). Using the information avalable, complete the following statements: - TTST Ine, has a free cash flow than thonez Corp. does. - The net operating proht after tax (NOPAT) for TTST Inc. is , whereas the NOPAT for PhoneZ, Corp. is - TTBT inc, has a return on inveuted capital of , whereas, Phonez Corp, has a return on invested capital of Your inference from the analysis is that both firms are in a high-growth phase, and their growth will be profitable. Considering your analysis, which of the following statements is true? If RoIC is less than the rate of return that investors require, which is the weighted average cost of capital (WACC). then the firm is adding value

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